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Supplier Selection and Evaluation

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Supplier Selection and Evaluation
Supplier selection is one of the most critical activities of purchasing management in supply chain. Supplierselection is a complex problem involving qualitative and quantities multi-criteria. A tradeoff between thesetangible and in tangible factors is essential in selecting the best supplier. The work incorporates PROMETHEE-2 and AHP in choosingthe best suppliers. the result suggest that AHP and PROMETHEE-2 process makes it possible to introduce the optimum order quanti- ties among the selected supplier so that the total value of purchasing becomes maximum. In the present study an eficient multi cri
-teria decision making (MCDM) approach has been proposed for quality evaluation and performance appraisal in supplier selection.
Supplier selection is a multi criteria decision making (MCDM) problem inluenced by multiple performance criteria/ attributes. These criteria attributes may be both qualitative as well as quantities. Qualitative criteria estimates are generally based on previous experi-ence and expert opinion on a suitable conversion scale (11 point fuzzy scale).this conversion is based on human judgment; therefore, predicted result may not be accurate always because the method doesn’t explore real data. In solution of MCDM problems thereshould be common trend is to convert quantitative criteria values in to an equivlant single performance index called multi attribute performance index (MPI). Benchmarking and selection of the best supplier can be made in accordance with the MPI values of all alter-native. This study highlights application of PROMETHEE-2 and AHP adapted from MCDM for utilizing quantitative real performanceestimate scores. Detail methodology of PROMETHEE-2 and AHP has been illustrated in this reporting through a case study.
Supplier Selection Using AHP andPromethee-2
KEYWORDS : Multi criteria decisionmaking (MCDM), supplier selection,PROMETHEE-2I. INTRODUCTION
The decision to place a certain volume of business with a sup-plier should always be

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